Suppose Susan Owns a Business That Operates in a Market

question 136

Multiple Choice

Suppose Susan owns a business that operates in a market characterized by monopolistic competition.Susan's profit-maximizing price is $12,her profit-maximizing output is 900 units per week,and her profits are $1,800 per week.Susan decides that she needs more profits and therefore raises her price to $15.At the new price of $15:

• A)profits will increase.
• B)profits will remain at $1,800.
• C)marginal revenue will be greater than marginal cost.
• D)marginal revenue will be less than marginal cost.

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Definitions:

Competitive Job Candidate

A person who possesses the skills, experience, and qualifications that make them stand out in the job market.

Mobile Devices

Portable electronic devices with computing capabilities, such as smartphones and tablets, allowing for communication and access to information on the go.

Local Expressions

Phrases or sayings that are specific to a particular geographical area or community.

Slang

A type of informal language consisting of words and phrases that are regarded as very informal, are more common in speech than writing, and are typically restricted to a particular context or group of people.